Last week we wrote that near-term risk in precious metals (Gold and GDX especially) was rising and a correction could begin soon. As Gold nearly reached major resistance at $1550/oz, the miners already began to correct. That negative divergence is an ominous signal for the sector in the short term.However, the good news is, at least at present, Gold remains very strong in real and intermarket...Read More
Nickel's three-month price on the London Metal Exchange was lower at the close of trading on Monday August 19, dipping below the $16,000-per-tonne support level amid a broadly low turnover across the complex, while a steady uptick in lead lead gains over the afternoon. Closing at $15,920 per tonne, nickel's futures price failed to close above its nearby support level after breaching the mark last...Read More
What happens when the world’s biggest miners run out of gold? We already know. We’ve already hit peak gold, and the only companies sitting on promisingnew reserves are the junior miners. The big miners are scrambling for more gold, and merger mania has takenhold. Large-cap miners are doing three things at record pace: They’re merging with other major miners (think Newmont/G...Read More
The Turkish steel producers have started what was expected to be another quiet week because of the sluggish demand for finished long steel during the summer holiday period, sources said on Monday August 19.The Turkish market and those in other Middle Eastern territories were closed August 12-15 for the Islamic Eid al-Adha celebrations, and many market participants were also away for summer holiday...Read More
The 10-year Treasury yield continues to bounce back Dow Jones Industrial Average (DJI) futures are signaling a strong start to the week, pointing to a 293-point burst out of the gate for the blue-chip index. The 10-year Treasury yield -- which helped fuel a late-week rally on Friday -- continues to bounce back, climbing to 1.61%, at last check. But the big driver this morning is news that the U.S....Read More
The Chinese tech firm posted a second-quarter earnings beatChinese tech name SINA Corp (NASDAQ:SINA) is up 6.8% at $40.20 in electronic trading, after the company announced a second-quarter earnings and revenue beat. This marks the eighth straight earnings beat for the company, according to Thomson Reuters. Some of the quarter's success boost came from Weibo's (WB) live-streaming business, combi...Read More
The surprising truth about S&P returns after previous yield curve inversionsThese past weeks have shown us that the equity markets are extremely vulnerable to headline risk, with interest rates and the trade war moving front and center. This has translated into a volatile market environment where eight of the past 13 trading days have triggered an S&P 500 Index (SPX - 2,888.68) move of plus or min...Read More
Here are five Fastmarkets MB stories you might have missed on Monday August 19 that are worth another look.Xinjiang Xinfa Aluminium, a subsidiary of Xinfa Group, was heard to have closed 500,000 tonnes of aluminium production operational lines at its plant in Xinjiang province, China due to an incident at its electrical transformer on August 18, sources told Fastmarkets on August 19.Ferr...Read More
StrengthsThe best performing metal this week was palladium, up 1.88 percent, despite hedge funds cutting their net bullish positions to a 10-week low. Gold bulls outnumbered the bears in the weekly Bloomberg survey of traders and analysts for a second week as the metal notches a third weekl...Read More
"A severe depression like that of 1920-21 is outside the range of probability." The Harvard Economic Society, Nov. 16, 1929 "In an economy that is overleveraged to historic proportions, economic stimuli will not do the trick." Kenneth Eade, American attorney, environmental and political activist, author political and legal thrillers, from Terror on Wall Street, a Financial Metafiction Novel; b....Read More
- Jordan Roy-Byrne CMT, MFTALast week we wrote that near-term risk in precious metals (Gold and GDX especially) was rising and a correction could begin soon. As Gold nearly reached major resistance at $1550/oz, the miners already began to correct. That negative divergence is an ominous signal for the sector in the short term.However, the good news is, at least at present, Gold remains very st...Read More
Avi GilburtSo, as the bulls pat themselves on the back for holding all the way down last year for a 20% draw down so that they can "enjoy" the rally we got in 2019, I hope they don't hurt their arms and shoulders from all their back-patting. But, they may be in for a dose of realism when they realize that the market has now been completely flat for the last twelve months.Allow me to show you a...Read More
By: Ira EpsteinGold monthly showing the breakout higher, weekly upside bias with 18 week MA nearing $1,400 with momentum up..Read More
Are rates on the Ten-Year Note finally bottoming? Quite possibly, according to technical indicators that we monitor closely. T-Notes touched a low last week of 1.47% after plummeting almost relentlessly from 3.49% last November. GDP was running at around 3% back then, and almost no one other than a few hardcore deflationists, your editor among them, saw rates on the Ten-Year falling below 2%....Read More
The talk of financial markets is about negative mortgage rates and its impact on global growth. Let's be straight, mortgage rates are linked to bond yields. Investors have the habit of factoring excess be it growth or recession. Assets prices these days are all about AI (artificial intelligence) powered momentum. Most of us make heavy losses when the investment we made starts reversing. Winners...Read More
"Don't Look Back. Something Might Be Gaining on You."MMT or the Magic Money TreeA Fundamental Change in the US/China RelationshipBone-Penetrating ExhaustionMontana and Back to Puerto RicoI am back from my 14th annual Maine fishing camp and the mood was decidedly different this year. The private event at Leen's Lodge is generally called Camp Kotok in honor of David Kotok of Cumberland Advisors w...Read More
White Gold Corporation is a newer name in the junior space, and holds the largest property portfolio in the White Gold District of the Yukon, with nearly 1.1 million acres.The company has a strong share structure with a good chunk of float held by Kinross Gold and Agnico Eagle.While the drill bit has had a reasonable amount of success at the company's projects, the technical picture leaves a l...Read More
Nickel's three-month price on the London Metal Exchange was lower at the close of trading on Monday August 19, dipping below the $16,000-per-tonne support level amid a broadly low turnover across the complex, while a steady uptick in lead lead gains over the afternoon. Closing at $15,920 per tonne, nickel's futures price failed to close above its nearby support level after breaching the mark last...Read More
The seaborne coking coal market had a muted start to the week on Monday August 19 amid this month's steady price decline.A cargo of premium low-vol hard coking coal was heard to have been traded at around $162 per tonne cfr China. But not enough details of the trade could be confirmed at the time of writing.Prices for premium hard coking coal on a cfr China basis are down by about 7% from...Read More
China's hot-rolled coil prices gained some more strength on Monday August 19 on news of a revamp in interest rates as well as tighter steelmaking restrictions in the country's northern region.DomesticEastern China (Shanghai): 3,730-3,740 yuan ($530-531) per tonne, up 10 yuan per tonneNorthern China (Tangshan): 3,730 yuan per tonne, up 10 yuan per tonnePrices in Shanghai rose as high as 3,740 yuan...Read More